John Husselbee: Finding real yield

UK dividends down

clock • 4 min read

With lingering concerns remaining about equity dividends, which halved in 2020, plus growing risk and generally lower yields available from bonds, John Husselbee says income seeking investors are understandably wondering about options for 2021 and beyond

Looking at equities, UK dividends may not return to pre-Covid levels until 2025 or later, with figures from Link Group revealing that the distributions from UK plc last year, at £61.9bn, were the lowest annual total since 2011. The make-up of the UK market left it harder hit than other countries as most of the pay-out comes from a handful of large oil, mining and banking companies. Income seekers can obviously look to overseas equities but, broadly speaking, there is a clear need for more diversified sources of yield. Diversification is vital throughout the economic cycle, whether buildi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Quality investing: Holding conviction when markets test investors

Quality investing: Holding conviction when markets test investors

Quality investors have no doubt had their conviction 'severely tested' of late

Scott Spencer
clock 31 March 2026 • 5 min read
Darius McDermott: The five-year laggards - can they revive?

Darius McDermott: The five-year laggards - can they revive?

'It's a complex backdrop for investors'

Darius McDermott
clock 31 March 2026 • 6 min read
Protecting portfolios during heightened inflation risk

Protecting portfolios during heightened inflation risk

'This is a year for careful, defensive positioning'

Fahad Hassan
clock 30 March 2026 • 3 min read